Gold strengthens on sustained demand
India Infoline News Service | Mumbai | March 19, 2017 10:00 IST
Gold prices rallied further owing to buoyant demand in the domestic market. As per the positive global cues, the domestic investors are moving towards investing more in gold.
Pure gold edged up by Rs 70 per 10 grams, to trade at Rs 28640 per 10 grams. Standard gold also increased by Rs 70 per 10 grams, to trade at Rs 28490 per 10 grams.
On the global front, gold hit its one-week high, as US Federal Reserve signaled a gradual increase in interest rates in 2017. Gold is a highly sensitive commodity to the interest rates, since the rising interest rates raise the opportunity cost of holding non-yielding bullion.
Gold prices had slumped in the month of December when the Federal Reserve hiked interest rates for the first time in a year.
In US market, Spot gold advanced 0.26% at $1,229.56 an ounce. On Thursday, the metal hit $1,233.13, its highest since March 6.
U.S. gold futures for April delivery settled up $3.10 at $1,230.20.